LONDON: London’s FTSE 100 fell on Monday as higher commodity prices sparked fears of a spike in inflation, while investors awaited Prime Minister Boris Johnson’s plan for a phased easing of business restrictions. The blue-chip FTSE 100 fell 0.7%, led by declines in consumer staples and industrials stocks.
Oil heavyweights BP and Royal Dutch Shell dipped 0.1% and 0.4%, respectively, despite a rise in crude prices.
The FTSE 100 has recovered nearly 35% from its March 2020 lows and is nearly 13% away from its highest level last year, thanks to record stimulus measures and massive vaccine rollouts.
The mid-cap index fell 0.8%, with G4S Plc being the biggest drag on the index after Canada’s GardaWorld said it would not raise its offer, appearing to leave the way clear for the higher bid lodged by rival Allied Universal to succeed.
British Airways-owner IAG rose 1.4% after it said it raised total liquidity by 2.45 billion pounds ($3.4 billion) by reaching final agreement for a 2-billion-pound loan and through a deal to defer 450 million pounds of pension deficit contributions.
Pub operator Mitchells & Butlers rose 9.7% despite reporting a plunge in sales as all its sites were forced shut under the latest lockdown.
Drugmaker AstraZeneca fell 0.3% after voluntarily withdrawing the use of its cancer drug Imfinzi to treat advanced bladder cancer in the United States after it failed to meet post-approval requirements.